Death Spiral? Chinese Car Obsession

(1/31/2013) China has overtaken U.S. as the largest car market. Owning a car is a symbol of social status in China even though driving in many cities in China is not a exciting experience at all. The traffic congestion in China is pretty well known (Look at this historical gridlock near Beijing in 2010). Recently, Beijing is experiencing severe smog for days. How bad was it? You cannot see the Sun in Beijing when you are in a sunny day (See CNN's report below). People say "The More The Air Is Polluted, The More I Prefer To Drive." Is it another new paradox smilar to Prisoner's dilemma or Paradox of thrift in the Economics?

Unlocking Your Phone? Not Allowed

(1/28/2013) Now, it is illegal to unlock your cell phone. The software coming with your cell phone is not what you bought and owned, it belongs to the wireless service provider.  As the report says "This is about carriers keeping people on their networks and squeezing the after-market for phone sales." They don't want the resale markets encroaching their profit. Let us mourn for the loss of consumers.

Wireless Service Provider and Lobbyists 1: Consumers 0 

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Business Positioning Is Difficult to Change

(1/28/2013) Business positioning is difficult to change, especially for a low-end brand. JC Penney is known for their discounts and sales. However, this company changed that policy one year ago and customers are not buying it. After a disappointing year and a loss of bargain searching shoppers, JC Penney is returning to its aggressive discounts.

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The winner: consumers.
Footnote: The current CEO, Ron Johnson, is ousted today (4/8/2013). It's obvious that it's no-sales strategy costed his job. Not a surprise.

This is another WOW. JC Penney launch an "apology" video to their old customers on youtube.
"It's no secret, recently JCPenney changed. Some changes you liked and some you didn't, but what matters from mistakes is what we learn. We learned a very simple thing, to listen to you. To hear what you need, to make your life more beautiful. Come back to JCPenney, we heard you. Now, we'd love to see you."

Underemployed Generation

(1/28/2013) A recent survey says that many college graduates hold jobs that don't require a college degree at all. Several things we should think about:
(1) What are the jobs generated by this lukewarm economic recovery?
(2) What do we teach in the college?
(3) What skill set do our college graduates hold to do their future jobs?

Chinese Babies Hungry for Foreign Milk

(1/24/2013) Four years ago, China had a huge scandal about adding carcinogens in the baby milk powder. Now the Chinese parents are buying baby milk powder crazily in Hong kong and Australia (through people traveling overseas) because they don't trust their Chines baby milk powder anymore. With such a huge demand (look at so many newborn babies in China), it empties the shelfs in HK & Australia. It also triggers some milk powder smuggling from New Zealand, which is a major milk powder exporting country. When New Zealand government announces that they will block illegal export of baby milk powder, the price of the NZ milk in China jumps immediately (news in Chinese).

(CC) Baby: I want to grow healthy.

Psychology of Waiting

(1/23/2013) Here I summarize some interesting psychological observations of waiting:

1. Skinner’s Law – “The other lines always move faster.” Everybody knows this feeling on the highway or at the toll booth.
2. Jenkin’s Corollary: However, when you are stuck in traffic and decide to switch to another other lane, the lane you left moves faster. 
3. Occupying customers: While entertained or occupied, the customers feel much less  waiting. For example, Disney theme park's waiting line management (see the picture below) or the mirrors in the elevator. However, the music played by the 800 customer service call center is often tolerated only when the waiting is reasonable.
4. Unoccupied time goes slowly
5. Pre-service waits seem longer that in-service waits: For example, at the pharmacy you are less impatient if the pharmacist keeps you waiting when (s)he is doing your prescription than you are waiting in the line. 
6. The Light at the End of the Tunnel: Reduce anxiety with attention, this is extremely important in undesirable waitings. For example, when there are aircraft mechanical problems airlines should give delayed passengers some information about how long they have to wait (but don't go far...).
7. Under promise, Over deliver (not the other way around): restaurant hosts tell you you will be waiting for 25 minutes, but your waiting is only 15 minutes.  

Before a new ride starts, Disney entertains visitors with videos or arrange employees dancing, playing, or telling you a story to make you feel you are not waiting. 

Economics of Gangnam Style

(1/23/2013) How much doe Gangnam Style bring to Youtube and PSY just on the online video along? According to an estimate, that video brings about $8 millions from that 1.2 billion view, in which one half goes to Youtube and the other half goes to PSY. No wonder PSY has such a big smile.

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